Less: Deductions

Funeral expenses, actual 180,000

Judicial expenses 32,500
Claims against the estate ---------- 25,000
Medical expenses ---------- 30,000
Unpaid mortgage (60,000 - 20,000) 40,000 40,000
Vanishing deduction (Schedule 1) 284,000 _____

Total 324,000 307,500

Less: Special deductions
Family home 400,000 ---
Standard deduction 5,000,000 ---
Total 5,400,000 ________
Net estate -------- 3,042,000
Less: Share of surviving spouse (Schedule 2) 1,150,000 1,091,250
Net taxable estate -------- ________
Net estate (distributable estate) after tax . 1,951,250

Schedule 1: Computation of vanishing deduction:

Value of property P 500,000

Less Mortgage paid 20,000
Initial basis 480,000
Less• Deductions (pro-rated)
(480,000/3,200,000) x 40,000 6,000
Base 474,000
Rate (more than 2 years, not more than 3 years) 60%
Vanishing deduction 284,400

Schedule 2. Computation of share of surviving spouse:

Gross conjugal:
Conjugal properties 2,300,000
(2,300,000 + 150,000) 2,450,000 2,450,000
Less' Conjugal expenses
(180,000+ 32,500+25,000+30,000) ------------ 267,500
Net conjugal 2,300,000 2,182,500
Multiply by ______50% 50%
Share 1,150,000 1,091,250

1. The benefits received from SSS are not taxable, but they are part of the estate of the
decedent which will be distributed to the heirs.

2. The claim against the estate is not deductible in computing the estate tax because it does
not comply with the requirement of notarization, but It is a